OC Industrial Finishes 2021 with One of Nation’s Tightest Vacancy Rates
The Orange County industrial market had a strong 2021, Cushman & Wakefield reported, with leasing. activity totaling 10.8 million square feet, 5.2% higher than 2020’s total. Countywide occupancy gains totaled 1.8 million square feet for 2021, dropping the vacancy rate 50 basis points year over year to end 2021 at 1.5%.
While the vacancy rate did increase slightly from third-quarter 2021, due to Ricoh vacating 500,000 square feet in Tustin, Orange County remains one of the tightest industrial markets in the nation. “Having a sub-2.0% vacancy rate for all of 2021 enabled landlords to push asking rents to new highs,” according to Cushman & Wakefield.
The overall asking rate for Orange County increased 31.1% or $0.33 year-over-year to $1.39 per square foot per month on a net basis. Warehouse and distribution buildings ended the year with asking rates of $1.29 psf/mo, an increase of 29.0% Y-O-Y.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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